The world's largest asset manager BlackRock (NYSE: BLK) is planning to tokenize exchange-traded funds (ETFs) following the success of its Bitcoin ETF, Bloomberg reported on Sep. 11. Sources familiar with the matter told the publication that the Wall Street giant is exploring ways to make ETFs available as tokens on a blockchain. The firm is working toward tokenizing ETFs tied to real-world assets (RWAs) like stocks. Related: What is tokenization? Explained In simple words, tokenization refers to the proc ...

Group 1 - BlackRock is exploring the tokenization of exchange-traded funds (ETFs) linked to real-world assets, considering regulatory implications [1] - The company previously launched a tokenized money-market fund, BUIDL, which has surpassed $2 billion in assets [2] - Tokenization could enable trading outside traditional hours, enhance international access, and allow shares to be used as collateral in crypto networks [3] Group 2 - The financial industry is gaining momentum in tokenization, with firms like Franklin Templeton issuing tokenized share classes [4] - BlackRock has tested tokenized fund shares on JPMorgan's Onyx blockchain and believes all financial assets can be tokenized [4] - Tokenization could potentially tap into the $400 trillion traditional finance market, as stated by BlackRock's CEO [5] Group 3 - The tokenized real-world asset (RWA) market reached an all-time high of $26.5 billion in 2025, marking a 70% increase since the year's start [6] - The tokenized RWA market is projected to reach $16 trillion by 2030, with U.S. Treasuries expected to lead growth [7] - Tokenized U.S. Treasuries are anticipated to reach $4.2 billion this year, with both traditional banks and blockchain firms exploring RWA products [7]

Core Insights - U.S. Treasuries are recognized as the safest and most liquid assets globally, with Treasury Bills (T-Bills) being short-term, risk-free investments exempt from state and local taxes [1] - Tokenized U.S. Treasuries are gaining popularity, with a record high of $7.45 billion reached on August 27, surpassing the previous peak of $7.42 billion on July 15 [3] Group 1: Tokenized U.S. Treasuries - Tokenized U.S. Treasuries are digital tokens on a blockchain that represent ownership of U.S. government debt or shares of funds holding Treasuries [4] - Implementation of tokenized Treasuries varies, with some tokens representing fractional ownership of T-Bills/T-Notes, while others represent ownership of traditional funds that hold Treasuries [5] - Tokenized Treasuries can exist on public blockchains like Ethereum or on permissioned systems, with Ethereum currently securing $5.2 billion of treasury products, representing a 70% market share [6] Group 2: Major Players in Tokenized Treasuries - BlackRock has launched the BUIDL fund, the world's largest tokenized U.S. Treasury for institutional investors, valued at $2.2 billion and paying daily interest directly to wallets, 90% of which are on Ethereum [7] - Fidelity Asset Management has introduced the Fidelity Digital Interest Token (FDIT), a blockchain-based version of its Treasury money market fund, which mirrors shares of the Fidelity Treasury Digital Fund and is issued on the Ethereum network [8]

Core Insights - BlackRock is exploring the tokenization of exchange-traded fund (ETF) shares to expand its digital asset infrastructure beyond traditional markets [1][2] - The initiative is part of a broader strategy that includes a $2.2 billion tokenized money-market fund launched in March 2024 and follows the introduction of its Bitcoin ETF [2][3] - CEO Larry Fink has emphasized that all financial assets can be tokenized, which would allow for trading outside standard hours and improve international access to US products [3] Regulatory and Market Context - BlackRock has tested tokenized fund shares using JPMorgan's Kinexys infrastructure, positioning itself as an early adopter of digital settlement models [4] - The tokenized money-market funds, excluding private credit, represent the largest category of real-world assets (RWA) with a market cap of $7.4 billion as of September 11 [4] - The evolution of regulatory frameworks is crucial as exchanges like Nasdaq are also moving towards trading tokenized stocks and ETFs [3][4] Challenges and Opportunities - Current challenges include reconciling ETF settlement through traditional Wall Street clearinghouses with the instant trading capabilities of blockchain [6] - The exploration of tokenized ETFs reflects a broader evaluation of blockchain technology in mainstream finance, aiming to enhance market infrastructure and improve collateral flows [7] - The combination of BlackRock's digital asset advocacy and regulatory shifts positions tokenized ETFs as a bridge between traditional and decentralized finance systems [7]

Core Insights - Figure Technologies' shares closed at $31.11, a 24% increase from its IPO price of $25, resulting in a valuation of $6.58 billion [1] - The company aims to demonstrate the efficiency of blockchain in creating markets for real-world assets and enhancing investor understanding of tokenization [2] - Figure's blockchain platform significantly reduces the time and cost associated with obtaining loans, completing processes in days rather than weeks and lowering mortgage costs from $12,000 to $1,000 [3][4] Company Performance - Figure has $11.7 billion in outstanding loans, making it the largest market for private credit on-chain, and has originated $16 billion in loans since its establishment in 2018 [4] - The IPO of Figure is seen as a potential catalyst for traditional investors to engage with tokenization narratives [5] Market Trends - There is a growing belief among investors that digital assets will disrupt traditional financial services, indicating a long-term appreciation for blockchain technology [6] - The interest in Figure's IPO reflects a shift towards valuing utility over speculation, particularly in the context of its cash-flowing, real-world credit platform [7]

Blockchain & Tokenization - BlackRock plans to tokenize real-world assets and stocks on blockchain [1]

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Core Insights - BlackRock is exploring the potential of bringing exchange-traded funds (ETFs) onto public blockchains, focusing on tokenizing funds linked to real-world assets like stocks, contingent on regulatory approval [1][5] - The firm previously launched the BlackRock USD Institutional Digital Liquidity Fund, which has become the largest tokenized Treasury product, managing nearly $2.2 billion [2] - Tokenizing ETFs would allow for trading around the clock and faster settlement times, enhancing accessibility for investors [3][4] Group 1 - BlackRock is considering the tokenization of ETFs, which would involve issuing and transacting fund shares as tokens on a blockchain [3] - The exploration of tokenized ETFs aligns with a broader trend in finance, where various financial institutions are testing blockchain applications for different asset classes [5] Group 2 - The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, is backed by short-term U.S. Treasuries and has quickly grown to manage nearly $2.2 billion [2] - Proponents of tokenized ETFs argue that they could provide significant benefits, including 24/7 trading and quicker settlement times compared to traditional finance [4]

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